Government and regulatory initiatives continue to support demand for motor insurance and selected non-motor lines. Non-life insurers should maintain stable operating performance through disciplined underwriting, pricing improvements and cost controls, despite modest premium growth in motor insurance.
Hong Kong:China’s insurance sector is likely to see modest growth in 2026, following a small rise in life insurance premiums in 1H26 amid ongoing business transformation and tighter distribution regulations, while government support continues to drive non-life sector growth, highlighted Fitch Ratings.
Life insurers’ premiums are under pressure from tighter bancassurance commission controls, while they continue to shift towards participating products with lower guaranteed rates to reduce spread risk.
“We expect stronger expense management and pricing-rate adjustment mechanisms to improve business quality and strengthen earnings resilience over the longer term,’’said Fitch.
Government and regulatory initiatives continue to support demand for motor insurance and selected non-motor lines. Non-life insurers should maintain stable operating performance through disciplined underwriting, pricing improvements and cost controls, despite modest premium growth in motor insurance.
The insurance sector’s comprehensive solvency position remains adequate.
However, higher reserve requirements and increased equity exposure may pressure life insurers’ capitalisation.
Life insurers with weaker risk-based capital continue to raise capital through debt issuance.